Singapore-listed Olam Group announced on February 24 that it will divest a 44.58% stake in its agricultural business, Olam Agri, to Saudi Agricultural and Livestock Investment Company (Salic), a subsidiary of Saudi Arabia’s sovereign wealth fund. The transaction, valued at $1.78 billion, brings Olam Agri’s total valuation to $4 billion and grants Salic an 80% controlling interest in the company.
This sale is expected to generate a gain of $1.84 billion for Olam Group, according to an exchange filing. Additionally, Olam plans to sell its remaining 19.99% stake in Olam Agri three years after completing the initial transaction, ultimately transferring full ownership to Salic.
Combined with a previous 35.43% stake sale to Salic in December 2022, Olam Group is set to unlock a total of $3.87 billion in gross proceeds from the full divestment of Olam Agri.
In parallel, Olam Group intends to list its ingredients business, Ofi, on the premium segment of the London Stock Exchange, with a secondary listing in Singapore. “With this transaction, we can now focus our attention on seeking strategic options to unlock value for the remaining Olam Group businesses and Ofi, including the pursuit of an Ofi IPO,” said Sunny Verghese, Group CEO.
Olam Agri, a key division of Olam Group, specializes in grain and seed trading, as well as the production of edible oils, pasta, and other food commodities. The business was formed following a corporate restructuring in early 2020.
The Persian Gulf region remains a crucial market for Olam Agri’s products, aligning with Saudi Arabia’s increasing focus on food security and agricultural investment.
